Proposal to Establish an Independent Housing Policy Control Tower
Goal to Stabilize Housing Prices at 2016 Levels
Saeroun Seontaek proposed a housing policy centered on establishing a new 'Housing Development Agency' (tentative name) with independence comparable to that of the Bank of Korea to stabilize housing prices.
On the 12th, Saeroun Seontaek stated in a press release, "We will create an independent housing policy control tower," adding, "The Housing Development Agency will oversee real estate-related policies such as housing supply, loan interest rates, redevelopment, floor area ratio, and public housing sales to achieve an appropriate Price to Income Ratio (PIR)."
Just as the Bank of Korea independently determines the base interest rate and money supply to maintain appropriate inflation, the Housing Development Agency will also operate independently without influence from the government or political circles.
Saeroun Seontaek also presented a plan to stabilize housing prices downward in the Seoul metropolitan area through the Housing Development Agency. The agency proposes a PIR of 7 to 9, aiming to return housing prices to 2016 levels. Currently, Seoul's PIR is 13, and Gyeonggi Province's is around 10, according to Saeroun Seontaek.
Just as the Bank of Korea manages monetary policy to maintain appropriate inflation, the Housing Development Agency will adjust public housing sale prices to meet target PIR levels and comprehensively plan mid- to long-term housing supply and mortgage loan interest rates.
Saeroun Seontaek explained, "Expectations have a significant impact on real estate, but housing prices rise abnormally because real estate policies are overturned every time the administration changes," adding, "Eliminating policy instability that flips according to political factions is the beginning of stabilizing housing prices."
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